TMI Blog2004 (5) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of the Indian Partnership Act and is a member of the second petitioner association. The printers associations are engaged in the business of job-work and it is their case that they carry out the job-works by various methods like offset, screen, letter press, gravure, flexography. It is averred that many members of the printers associations are engaged in the business of printing where they also supply paper and/or other material to their customers. The petitioners seek to impugn the trade circular dated October 8, 2003. They have also prayed that it be declared that the activity of printing on paper supplied by the customers does not constitute or amount to a works contract and that on such activity tax is not payable under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ink consumed in printing from their customers. The learned Senior Counsel, thus, submitted that the provisions of the Act of 1989 do not apply. 4.. In opposition to the writ petition, the reply affidavit has been filed on behalf of the respondents 3 and 4 and, inter alia, it is stated that the trade circular impugned in the writ petition and such other trade circulars have been issued to educate the departmental officers, members of the trade and all concerned on important developments relating to sales tax laws. It is stated that the Act of 1989 can be applied to the printers (the members of the petitioners associations) who carry out the activity of printing on paper supplied by the customers because in this activity the transfer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7.. The Full Bench of this Court in the case of Sarvodaya Printing Press [1994] 93 STC 387 held thus: "3. Following are the uncontroverted salient features pertaining to the transaction: (1) The applicant runs a printing press where only job-work is done. (2) The applicant does not keep ready stock of any material such as paper, ink or standard money receipt books for general use. (3) The MPEB also does not deal in any goods. (4) Charges for supply are one composite amount for the entire job. (5) The applicant could not sell the receipt books to anyone else and was obliged to destroy the excess left over. (6) The receipt books were of no commercial use to anyone else and hence had no marketable value. 4.. Having regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tandard goods and were not capable of any use to anyone else and thus had no commercial value. Material could not be used even as a scrap if rejected and had to be destroyed." 8.. Sarvodaya Printing Press [1994] 93 STC 387 (Bom) [FB] has been affirmed by the Supreme Court. The decision of the Supreme Court as indicated above, is reported in [1999] 114 STC 242; (1999) 9 SCC 65 (State of Maharasthra v. Sarvodaya Printing Press Fine Art Printer). The Supreme Court observed thus: "2. The judgment of the Maharashtra Sales Tax Tribunal is not before us but we find the facts found stated in its order on the reference application. They are that the respondent ran a printing press at Nagpur wherein it carried on printing work for its customers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nverted into a solution and stored in a tank. Thereafter, the grey fabric was passed through the above solution several times, till the requisite coloured shade was obtained on the fabric as per the specifications of the customers. Then the dyed fabric was washed through a water solution to drain away the chemical solution remaining on the fabric. On completion of the job-work, the dyed/printed fabrics with the requisite coloured shade were returned by the assessee to the respective customers. In the backdrop of these facts and circumstances the question arose whether the activity attracted the provisions of the Act of 1989. In the facts and circumstances of the case this Court held that in a dyeing/printing contract, the dominant intenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that depends as mentioned hereinbefore, on the nature of the transaction and what is the dominant intention has to be found in each case in the light of its own facts. Since the respondents themselves have stated in their reply affidavit that the nature of contract between the printers (the members of the petitioners associations) and the customers shall have to be scrutinised during the assessment proceedings and any order shall only be passed after hearing the concerned party, we are of the view that the diverse contentions raised in the writ petition including the challenge to the trade circular need not be gone into by us in the present writ petition. The concerned members of the petitioners associations whose assessment proceedings ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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